Wilkins Inc

question 54

Essay

Wilkins Inc. owned 60% of Motumbo Co. During the current year, Motumbo reported net income of $280,000 but paid a total cash dividend of only $56,000.Required: Assuming an income tax rate of 30%, what amount of Deferred Income Tax Liability arising this year must be recognized in the consolidated balance sheet?

---

Definitions:

Performance Results

The outcomes or achievements resulting from the execution of specific actions, tasks, or activities.

Management by Objectives (MBO)

A strategic management model focusing on setting and agreeing to specific objectives between management and employees to improve organization performance.

Work Efforts

The measure of the amount of energy, time, and resources employees put into their tasks and roles at work.

Agreed-Upon Objectives

Goals or targets that have been mutually established and accepted by all parties involved in a project or operation.